China's vision: The renminbi as a rival to the dollar - Freeland File

During a panel at the Aspen Ideas Festival, Chrystia Freeland and Simon Johnson discuss China's goals, its hunger for investment and the strong chance it'll slide into a recession. (July 2, 2012)

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It's what he. Is it's again. City slowing down it is to some degree that they have more of an ability potentially to -- in the vote that some other countries. But the Europeans. What that would mean they have a major problem. The fact that China has some longstanding issues we've got the government with the what about how to finance investment hunger for investment. It's what oh I don't think they would necessarily have to go through this kind of crisis. But it is also proven for countries to become rich and go to the state without going through and it. And next chapter in -- -- -- depressed that the Chinese crisis. It is if it's I think it might be -- and it doesn't destabilize the world that only between success and what you what you need to worry about in terms of events that really move us away from the kind of expert experience -- it's yours is a disaster in Europe. -- It's approaching. And a failure to bring our fiscal house in order under control in the United States. Once the Europeans have gone through this crisis may take awhile -- take two years 95 is they take ten years once the US is no longer the predominant. Number one's a patent for best around the world. Then we will face pressure and and the US remains safe haven. Up until you're either exit every game tactically or the crisis well they'd -- the Chinese want to create a -- reserve currency it would make it written B. Right into the thought. And there are some people. Who think they can do this -- about mutual. Next five years I think that they can do it wouldn't take long elect went to -- so eventually yes. We will be challenged in respect what happens in Europe. I think the more likely short term pressure comes from that Europeans to deepen the crisis at least of them come out the form -- dramatic -- -- -- -- off. Which rivals the US dollars of -- And once it's actually -- have more choice again. The pressure. You should absolutely step down from this situation if it undermines. That the legitimacy and the integrity of the Federal Reserve System.

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